Iceland's central bank fixes currency rate REYJKAVIK, Iceland: The Central Bank of Iceland has fixed the exchange rate of the country's currency, the krona, to try to stablize the domestic economy.
REYJKAVIK, Iceland: The Central Bank of Iceland has fixed the exchange rate of the country's currency, the krona, to try to stablize the domestic economy.
Bloomberg: Iceland Seeks Loan From Russia, Pegs Krona, Takes Over Bank (October 7)
Iceland sought a 4 billion-euro ($5.43 billion) loan from Russia, pegged the slumping krona to a basket of currencies and took control of its second-biggest bank to stem a collapse of the financial system.
The central bank said it pegged the koruna against a basket of currencies at a rate equivalent to 130 per euro. Still, traders at UBS stopped trading the currency after markets became illiquid, Kapadia said. According to Nordea Bank AB, the krona traded at 200 to the euro as of 11:39 a.m. in Reykjavik. That's 53 percent weaker than the peg implies.
And this is from Bloomberg??? A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
Iceland attacks `friends' for lack of support Geir Haarde, Iceland's prime minister, said on Tuesday that the country's "friends" had not offered financial assistance to his country, forcing it to seek a capital injection from Russia. Iceland earlier revealed that Russia had agreed to provide the country with a €4bn ($5.4 bn) loan as the crisis-hit country set about shoring up its foreign exchange reserves, although Russia's deputy finance minister, Dmitry Pankin, later said no agreement had been reached. Iceland's currency, the krona, rallied on the news wiping out losses made on Monday and earlier on Tuesday. "We have throughout this year asked many of our friends for swap agreements and for other forms of support in these extraordinary circumstances," Mr Haarde said. "We have not received the kind of support that we were requesting from our friends. So in a situation like that one has to look for new friends."
Geir Haarde, Iceland's prime minister, said on Tuesday that the country's "friends" had not offered financial assistance to his country, forcing it to seek a capital injection from Russia.
Iceland earlier revealed that Russia had agreed to provide the country with a €4bn ($5.4 bn) loan as the crisis-hit country set about shoring up its foreign exchange reserves, although Russia's deputy finance minister, Dmitry Pankin, later said no agreement had been reached.
Iceland's currency, the krona, rallied on the news wiping out losses made on Monday and earlier on Tuesday.
"We have throughout this year asked many of our friends for swap agreements and for other forms of support in these extraordinary circumstances," Mr Haarde said. "We have not received the kind of support that we were requesting from our friends. So in a situation like that one has to look for new friends."
((*jaw)) In the long run, we're all dead. John Maynard Keynes
We aren't short of opportunities these days. But Jérôme got there first. "The womb that spawned that thing is fertile yet"
500 % interest rates here we come... Peak oil is not an energy crisis. It is a liquid fuel crisis.
Later the exchange rate was allowed to move freely and dropped some 30% below the fixed one.
The two takes on the defense of the krona is 1) stupidity and 2) giving the really rich some time to convert there assets to foreign denominations on the taxx-payers dime. A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!
